"Domestic Maritime Transport Industry Outlook Remains Strong in the Second Half"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities forecasted on the 12th that despite the recent stock price weakness of domestic shipping companies, the overall shipping industry is expected to remain strong in the second half of the year.

Researcher Jeong Yeonseung of NH Investment & Securities stated, "Although the stock prices of domestic shipping companies are showing weakness, the overall direction of the shipping industry is expected to remain strong in the second half." Currently, HMM's stock price weakness is attributed to concerns over the possibility of convertible bond conversion and short-term stock price surges. In the case of Pan Ocean, there are individual risks such as uncertainties related to participation in the Eastar Jet acquisition battle. In particular, it is analyzed that a positive mid- to long-term outlook on Pan Ocean, which experienced a relatively large stock price correction, is still possible.

Researcher Jeong said, "On the 10th, global maritime transport companies' stock prices showed strength," adding, "Nippon Yusen (a Japanese comprehensive shipping company), Pacific Basin Shipping (a Hong Kong bulk carrier), and China COSCO (a Chinese comprehensive shipping company) reached 52-week highs, while Mitsui OSK (a Japanese bulk carrier), Golden Ocean (a U.S. bulk carrier), and Star Bulk Carriers (a U.S. bulk carrier) also saw stock price increases approaching record highs."

Since global maritime transport companies are showing strong stock prices, there is no reason for domestic transport companies' stock prices to decouple and not follow the same trend, according to the analysis.

The reason for the strong stock prices of global maritime transport companies is the expanded expectation of rising freight rates. While container freight rates continue to be strong, bulk freight rates, which had recently shown weakness, are reversing to an upward trend starting with a rebound in futures freight rates.

Researcher Jeong said, "The secondhand bulk carrier price index, which indicates the long-term freight rate direction, has risen 42% since the beginning of the year, continuing its upward trend." He also added, "With supply growth being restrained compared to demand growth, the possibility of a short-term freight rate decline is limited," and "In the case of containers, port congestion is worsening not only in the U.S. but also in Europe and China."

This content was produced with the assistance of AI translation services.